Published 28th March 2019
If you have been thinking about how to fund your retirement through property investment, there are a number of options that you have to consider. There is no doubt that property offers a lucrative potential investment. For retirement, property can help to cushion your savings, providing more peace of mind and an additional income stream on top of pension.
Although it is tempting to assume that all you need to is simply sell your current home and invest in a flat or move to a retirement village and rake in the profits, there are many things that you will need to consider, not least local and national laws. It can be incredibly useful to seek expert advice from an experienced conveyancing solicitor to help you ensure that your property investment plans are done by the book.
With that said, what are the options that you could look at when funding your retirement through property investment? Some of the best options include the following:
Rent out a room.
If you are mostly happy where you are but you still want to generate a steady income stream each month, renting out space within your property is certainly an option. This can be done on a long-term basis, by taking in a lodger who pays a designated rental sum each month. If you vet prospective tenants carefully and find a quiet, non-smoking, well-behaved tenant, this can work well. Another option that can vet a higher income is to look at platforms such as Airbnb. The upside of this is that you would typically rent out on a short-term basis to tourists and can, therefore, charge by the night rather than the month. On the downside, it may not be feasible if you are not keen on strangers being in your home. The income may not always be steady, either, as travel seasons are fluid.
Rent your entire property.
Another option to consider if you are feeling ready to either move into a retirement home or even if a family member has offered space within their home is to rent out the entire property. This would work much the same as renting a room, only it would be the entire space available for rent. Once again, you could choose to rent on a long-term basis, through a rental agency or with the help of your solicitor. You could also opt to rent out the entire space on a short-term basis. This option once again, while not always a steady income, can be very lucrative.
Sell your property.
Finally, another option that you could consider is to sell the property. You could then either downgrade to a smaller property that you can pay off quickly using part of the previous sale profit, investing the remainder for month to month living. Another option is to move to a semi-assisted retirement village that offers a very reasonable rental while living off the profits of the sale and investing the profits with your conveyancer's help.
Whichever option you decide to choose, getting expert advice before making any decisions is vital. Speak to our experienced conveyancers in the United Kingdom at Home Legal Direct and let us know how we can help you get the most from property investment.